AIG in Africa
Contents
Regional Map, Key facts
and regulatory changes
4-5
North Africa 6
West Africa7
East Africa8-9
Southern Africa
2
Johannesburg by night
10-11
In corporate boardrooms across the world
more and more business leaders are
actively talking about Africa and at AIG
we’ve been actively engaging with Africa
for over 50 years.
Our long standing commitment to Africa
dates back to the establishment of our
first operation in Uganda in 1961, quickly
followed by South Africa in 1962.
Today AIG has four operations in Africa – Egypt, Kenya
South Africa and Uganda and transacts business across the
continent in a further 49 countries.
Africa is a vast continent with a wide range of insurance
economies at differing stages of development and regulated
in different ways, however if there is one thing that is
important to AIG, it is the importance of being local and the
need to understand the differences of doing business in the
various countries.
Challenges such as political and social unrest are ever present
but if you tread carefully with your eyes wide open, success
can follow.
“Subira Huvuta Heri” – Swahili proverb which translates to
“Patience brings Success”
3
Key Facts
NORTH AFRICA
TUNISIA
MOROCCO
ALGERIA
WESTERN
SAHARA
LIBYA
EGYPT
MAURITANIA
CAPE VERDE
NIGER
MALI
SUDAN
CHAD
SENEGAL
GAMBIA
ERITREA
BURKINA
FASO
GUINEA-BISSAU
GUINEA
DJIBOUTI
BENIN
SOMALIA
NIGERIA
SIERRA LEONE
COTE
GHANA
D’IVOIRE
TOGO
LIBERIA
WEST AFRICA
CENTRAL
AFRICAN
REPUBLIC
ETHIOPIA
SOUTH
SUDAN
CAMEROON
UGANDA
EQUATORIAL GUINEA
SAO TOME & PRINCIPE
GABON
KENYA
REPUBLIC OF
CONGO
BURUNDI
RWANDA
• 54 countries
EAST AFRICA
DEMOCRATIC
REPUBLIC OF
CONGO
• $1.8 trillion GDP in 2011
SEYCHELLES
TANZANIA
• English and French widely spoken across 37 countries
• More than 52 cities with a population in excess of 1 million
COMOROS
ANGOLA
• The continent has the largest land mass of
uncultivated arable land
• 11 countries among the top ten global resource
countries in at least one major mineral
ZAMBIA
MOZAMBIQUE
MADAGASCAR
ZIMBABWE
NAMIBIA
• Oil and gas production has increased more rapidly
than in any other region
• Creation of trade blocs amongst the African countries,
cooperation across political, economic and social
fields, aim to establish a monetary union and
harmonization of fiscal and regulatory policies
• Business friendly climates and macroeconomic policies
to encourage foreign investment, partnerships with
foreign investors
4
MALAWI
Source: IMF, McKinsey, Accenture, EIU, BMI , AXCO, Swiss Re Sigma, CIA World Fact Book
BOTSWANA
SWAZILAND
SOUTH
AFRICA
LESOTHO
SOUTHERN AFRICA
MAURITIUS
Economic Indicators
Growth in Urban Population
Percentage points difference, 2000-2010
Share of households in each income bracket
% millions of households
Discretionary
Income
163
198
244
6
11
8
12
14
18
21
17
23
29
32
Basic needs
34
24
Household income brackets
$ PPP1 2005
Globals (>20,000)
Consuming middle class
(10,000-20,000)
Emerging consumers
(5,000-10,000)
29
Basic consumer needs
18
Destitute (<2,000)
(2,000-5,000)
1 Purchsing power parity adjusts for price differences in identitcal goods across countries to reflect
differeneces in prchasing power in each country.
Source: Canback Global Income Distribution Database (C-GIDD), McKinsay Global Institute
• Rapid urbanization
• 5
2 cities across the continent each have more than 1
million people and this is projected to grow to 50% of
the total African population moving to cities by 2030
Top 10 FDI Net Receivers
Current USD
• B
y 2020 more than half of African households will have
discretionary spending power
• N
umber of households with discretionary income projected to
rise by 50% reaching 128 million by 2020; with top 20 cities
having combined spending power of $1.3 trillion
• Outperformance of African economies
• W
orld Bank ease of doing business report highlighted Africa as
a continent that is making strides toward becoming a business
friendly regulatory environment
• C
onsumer facing sectors (banking, telecoms etc) are
experiencing growth of two to three times faster than those in
countries belonging to the OECD
• A
frica’s $107 billion financial services industry will be worth $517 billion by 2020, growing 15% annually
Worlds 10 fastest growing economies
Annual average GDP growth %
2001-2010
Angola11.1
China10.5
Myanmar10.3
Nigeria8.9
Ethiopia8.4
Kazakhstan8.2
Chad7.9
Mozambique7.9
Cambodia7.7
Rwanda7.6
2011-2015
China9.5
India8.2
Ethiopia8.1
Mozambique7.7
Tanzania7.2
Vietnam7.2
Congo7.0
Ghana7.0
Zembia6.9
Nigeria6.8
Source: The Ecomonist, IMF
GDP growth, unweighted annual average, %
5
Asian countries
4
African countries
3
1970s 1980s
1990s2000s2011-15
Excluding countries less than 10M population and Iraq and Afganistan
African Regulatory Changes
CIMA
6
As of October 1, 2011, the insurance
law that governs in 14 countries in
Africa has been amended to include a
“cash before cover” requirement.
Nigeria Effective January 1, 2013, Nigerian
insurance policies may only be issued
once the entire corresponding premium
has been collected
• C
hina invested $44bn in the last five
years in the sub-Saharan countries
and $52 billion in North Africa and
the Middle East. Sino-African bilateral
trade topped $115 billion in 2011,
and continues to grow at a rate of
44% each year
• F
DI to Africa projected to rise to $150
billion by 2015, domestic resources
being mobilized at a faster rate to
accommodate demand, in particular
from China and India
Ethiopia
The Federal Government of Ethiopia
has implemented a new “No Premium,
No Cover” rule, by which insurance
policies issued without full collection of
the premium, are considered void.
Kenya
A compulsory 18% cession of all treaty
reinsurance has been extended until
December 31, 2015
5
NORTH AFRICA
TUNISIA
North Africa
at a glance
MOROCCO
ALGERIA
WESTERN
SAHARA
Algeria
Egypt
Population: 38,087,812
GDP: $206.5B
GDP growth rate: 2.6% (2012 est)
Population: 85,294,388
GDP: $255B
GDP growth rate: 2% (2012 est)
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Libya
Morocco
Population: 6,002,347
GDP: $85.11B
GDP growth rate: 121.9% (2012 est)
Population: 32,649,130
GDP: $97.17B
GDP growth rate: 2.9% (2012 est)
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LIBYA
EGYPT
Tunisia
Population: 10,835,873
GDP: $44.7B
GDP growth rate: 2.7% (2012 est)
Network Partner
AIG in Egypt
Established in 2000, AIG is one of the leading of foreign insurers in
Egypt with a 4% market share, providing the full range of consumer
and commercial lines insurance. Distribution is mainly through
Agency, Bank partners as well as international brokers. AIG has
a staff of 131 in Egypt, led by Country Manager Michael Jensen
(Michael.jensen@aig.com), with a Head office in Giza, Cairo
and 6 branches across the country. Despite the challenging market
situation, AIG saw an 8% growth in its business in 2012 over the
previous year.
In 2012 AIG was awarded “Insurer of the Year“ by one of Egypt’s
leading business publications. This award was in recognition of
AIG’s outstanding service and commitment to its customers at the
time of the Arab Spring uprising earlier in 2011.
6
West Africa
at a glance
MAURITANIA
CAPE VERDE
NIGER
MALI
SENEGAL
GAMBIA
BURKINA
FASO
GUINEA-BISSAU
GUINEA
BENIN
NIGERIA
SIERRA LEONE
Benin
Population: 9,877,292
GDP: $7.541B
GDP growth rate: 3.5% (2012 est)
COTE
GHANA
D’IVOIRE
TOGO
LIBERIA
WEST AFRICA
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Burkina Faso
Cape Verde
Population: 17,812,961
GDP: $10.27B
GDP growth rate: 7% (2012 est)
Population: 531,046
GDP: $1.857B
GDP growth rate: 4.8% (2012 est)
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Cote d’Ivoire
Gambia
Population: 22,400,835
GDP: $1.857B
GDP growth rate: 8.1% (2012 est)
Population: 1,883,051
GDP: $940M
GDP growth rate: -1.6% (2012 est)
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Ghana
Guinea
Population: 25,199,609
GDP: $40.12B
GDP growth rate: 8.2% (2012 est)
Population: 11,176,026
GDP: $5.744B
GDP growth rate: 4.8% (2012 est)
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Guinea-Bissau
Liberia
Mali
Population: 1,660,870
GDP: $884M
GDP growth rate: -2.8% (2012 est)
Population: 3,989,703
GDP: $1.767B
GDP growth rate: 9% (2012 est)
Population: 15,968,882
GDP: $9.603B
GDP growth rate: -4.5% (2012 est)
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Mauritania
Niger
Nigeria
Population: 3,437,610
GDP: $4.096B
GDP growth rate: 5.3% (2012 est)
Population: 6,899,327
GDP: $6.556B
GDP growth rate: 14.5% (2012 est)
Population: 174,507,539
GDP: $272.6B
GDP growth rate: 7.1% (2012 est)
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Senegal
Sierra Leone
Togo
Population: 13,300,410
GDP: $13.95B
GDP growth rate: 3.7% (2012 est)
Population: 5,612,685
GDP: $3.824B
GDP growth rate: 21.3% (2012 est)
Population: 7,154,237
GDP: $3.624B
GDP growth rate: 5% (2012 est)
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Source: CIA World Factbook
7
East Africa
at a glance
CHAD
SUDAN
ERITREA
DJIBOUTI
SOMALIA
CENTRAL
AFRICAN
REPUBLIC
ETHIOPIA
SOUTH
SUDAN
UGANDA
KENYA
BURUNDI
RWANDA
Burundi
Central Africa Repuplic
Population: 10,888,321
GDP: $2.53B
GDP growth rate: 4.2% (2012 est)
Population: 5,166,510
GDP: $2.168B
GDP growth rate: 4.1% (2012 est)
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Chad
Djibouti
Population: 11,193,452
GDP: $9.723B
GDP growth rate: 7.3% (2012 est)
Population: 792,198
GDP: $1.36B
GDP growth rate: 4.8% (2012 est)
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Eritrea
Ethiopia
Population: 6,233,682
GDP: $3.108B
GDP growth rate: 7.5% (2012 est)
Population: 93,877,025
GDP: $41.89B
GDP growth rate: 7% (2012 est)
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EAST AFRICA
TANZANIA
AIG in Kenya
The AIG team in Nairobi
AIG is Kenya’s leading foreign insurer and plays a significant part
in the development of the local insurance industry. Established in
1967, today AIG in Kenya has just under 80 employees and with
a Head office in Nairobi and a branch office in Mombasa, offers
an extensive range of insurance solutions for both the consumer
and corporate sector through brokers, bank partners and a large
network of dedicated agents. Led by Japh Olende (japh.olende@aig.
com), Managing Director AIG Kenya and Head of East Africa, AIG’s
business in Kenya has shown strong profitable growth over the last
few years, including growth of over 14% in 2012.
AIG also plays a strong thought leadership role within the insurance
market in key areas such as global best practice, product innovation
and the importance of strong corporate governance.
8
AIG in Uganda
AIG Uganda, Head Office
AIG established a presence in Uganda in 1961, and today from its
head office in Kampala, offers a range of insurances for consumer
and corporate clients through a network of agents as well as
brokers. As Uganda’s only international insurer and one of the
market leaders, AIG plays a key role in the local insurance market,
insuring a significant number of Uganda’s leading businesses. Led
by Managing Director, Anna Othieno (anna.othieno@aig.com), AIG
has 50 employees and a branch in Mbarara, as well as an agency
office in Kampala. 2012 saw strong growth of 10% for the company.
In Q1 2013, AIG’s business in Uganda was grouped with AIG’s
business in Kenya under a broader East Africa business region, led
by Japh Olende. This new structure will allow AIG to focus on the
development of insurance across the wider East Africa region to key
markets such as Tanzania and Ethiopia.
Kenya
Rwanda
Sudan
Population: 44,037,656
GDP: $41.84B
GDP growth rate: 5.1% (2012 est)
Population: 12,012,589
GDP: $6.95B
GDP growth rate: 7.7% (2012 est)
Population: 34,847,910
GDP: $51.58B
GDP growth rate: -11.2% (2012 est)
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Somalia
Tanzania
Uganda
Population: 10,251,568
GDP: $2.372B
GDP growth rate: 2.6% (2012 est)
Population: 48,261,942
GDP: 27.98B
GDP growth rate: 6.5% (2012 est)
Population: 34,758,809
GDP: $20.46B
GDP growth rate: 4.2% (2012 est)
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South Sudan
Population: 11,090,104
GDP: $11.45B
GDP growth rate: -55% (2012 est)
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Source: CIA World Factbook
9
Southern Africa
at a glance
CAMEROON
EQUATORIAL GUINEA
SAO TOME & PRINCIPE
GABON
REPUBLIC OF
CONGO
DEMOCRATIC
REPUBLIC OF
CONGO
SEYCHELLES
COMOROS
ANGOLA
ZAMBIA
MALAWI
MOZAMBIQUE
MADAGASCAR
ZIMBABWE
NAMIBIA
BOTSWANA
Angola
SWAZILAND
Population: 22,599,098
GDP: $10.05B
GDP growth rate: 1.9% (2012 est)
SOUTH
AFRICA
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LESOTHO
SOUTHERN AFRICA
Botswana
Cameron
Comoros
Population: 2,127,825
GDP: $14.98B
GDP growth rate: 7.7% (2012 est)
Population: 1,322,238
GDP: $11.93B
GDP growth rate: 3.4% (2012 est)
Population: 752,288
GDP: $595M
GDP growth rate: 2.5% (2012 est)
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Democratic Republic of the Congo
Equatorial Guinea
Gabon
Population: 704,001
GDP: $20.65B
GDP growth rate: 5.7% (2012 est)
Population: 1,640,286
GDP: $16.8B
GDP growth rate: 6.1% (2012 est)
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Lesotho
Madagascar
Malawi
Population: 1,936,181
GDP: $2.62B
GDP growth rate: 4.3% (2012 est)
Population: 22,599,098
GDP: $10.05B
GDP growth rate: 1.9% (2012 est)
Population: 16,777,547
GDP: $4.49B
GDP growth rate: 4.3% (2012 est)
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Population: 75,507,308
GDP: $17.7B
GDP growth rate: wwww7.1% (2012 est)
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MAURITIUS
Mauritius
Mozambique
Namibia
Population: 1,322,238
GDP: $11.93B
GDP growth rate: 3.4% (2012 est)
Population: 24,096,669
GDP: $14.64B
GDP growth rate: 7.5% (2012 est)
Population: 2,182,852
GDP: 12.15B
GDP growth rate: 4.6% (2012 est)
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Republic of Congo
Sao Tome & Principe
Seychelles
Population: 4,492,689
GDP: $13.74B
GDP growth rate: 4.9% (2012 est)
Population: 186,817
GDP: $261M
GDP growth rate: 4.5% (2012 est)
Population: 90,846
GDP: $971M
GDP growth rate: 3% (2012 est)
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South Africa
Swaziland
Zambia
Population: 48,601,098
GDP: $390.9B
GDP growth rate: 2.6% (2012 est)
Population: 1,403,362
GDP: $3.651B
GDP growth rate: 2.9% (2012 est)
Population: 14,222,233
GDP: $20.68B
GDP growth rate: 6.5% (2012 est)
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Zimbabwe
Population: 13,182,908
GDP: $10,8B
GDP growth rate: 5% (2012 est)
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AIG in South Africa
AIG’s leading business in Africa, with
just under 400 employees and one
of the leading international insurers
in South Africa. AIG offers one of the
most complete ranges of insurance
products within the market serving
both the consumer and corporate
sectors. Business mix is approximately
43 % consumer business and 57%
Commercial business.AIG also has a life
license in South Africa which currently
supports it Accident & Health proposition
to the consumer market.
Property, Energy, Marine, Financial
Lines, Combined and Aviation lines of
business. These are offered through
extensive broker networks of both Tier 1
and Tier 2 brokers.
New products launched in 2012 include
Aviation and Cyber Insurance. Planned
new products for 2013/2014 include
Trade Credit Insurance.
For consumer business, AIG leads
with Accident & Health products, travel
insurance as well as motor, home
insurance, distributing these products
through all channels including Brokers,
Banks, travel agents, and the broad
market.
Led by Managing Director, Wayne
Abraham (wayne.abraham@aig.com)
AIG has a strong branch and
office network with a head office in
Johannesburg and 4 branches in Cape
Town, Durban, Port Elizabeth and
Pretoria. In addition there are 3 satellite
offices in East London, Nelspruit and
Pietermaritzburg. For 2013 / 2014 a
further 2 satellite offices are planned in
George and in Bloemfontein.
A comprehensive range of commercial
insurance solutions and risk
management advice are provided for
corporate clients including Casualty,
Business growth for the company is
strong, with an overall growth of 8.5%
across the business in 2012 led mainly
by the commercial lines business
which saw growth of over 18%.
Both AIG South Africa and AIG Life
South Africa are rated AAA (zaf) (stable)
by Fitch. The local solvency margin for
AIG South Africa is 68% compared to a
statutory requirement of 15%.
AIG celebrated its 50th anniversary in
South Africa in 2012, and can trace its
foundation in the country to the provision
of insurance for the Gariep Dam project,
when AIG established a team to insure
and provide risk management for the 8
year project. The dam opened in 1971
and is South Africa largest reservoir.
Source: CIA World Factbook
11
www.aig.com
MEA REGIONAL OFFICE
The Gate, 11th Floor, West Wing
Dubai International Financial Center
P.O. Box 117719 Dubai
Tel: +971 4 362 1700
EGYPT
AIG Egypt Insurance Company
S.A.E.Head Office,44 Abdel
Moniem Riad Street,1st floor,
Mohandessin, Giza, Egypt
Tel: +20 2 33082000
KENYA
Eden Square Complex
Chiromo Road
P. O Box 49460,
Nairobi 00100
Tel: +254 20 367 6000
SOUTH AFRICA
10 Queens Road
Parktown 2193
Johannesburg
Tel: +27 11 551 8000 UGANDA
Plot 24A Akii Bua Road
P. O Box 7077
Kampala
Tel: +256 312 211311
American International Group, Inc. (AIG) is a leading international insurance organization serving customers
in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual
customers through one of the most extensive worldwide property-casualty networks of any insurer. In
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